Mar 11, Colombo: The issue of Sri Lanka Development Bonds (SLDBs) for US$ 60 million has been oversubscribed by 3.1 times with total bid received amounting to US$ 187 million, the Central Bank said.

The Central Bank on behalf of the government has offered to issue SLDBs of US$ 60 million in 3-year tenor to eligible investors for subscription at a rate of US$ 6 month LIBOR plus a margin to be determined through competitive bidding.

Both foreign and local commercial banks have subscribed bids at the auction that was opened from March 03 - 10 for bidding. The bonds have a settlement date on March 17.

Due to the high demand from the investors, the government has decided to accept the entire amount of US$ 187 million in 3 year maturity at the market determined rates of US$ Dollar 6 month LIBOR plus a weighted average margin of 400 bps, the Bank said in a statement on Monday.

The US Dollar 6 month LIBOR rate as of March 10, 2014 is quoted at 0.3318 per cent.